2008-10-27

The lie: this catastrophe is a first

The big lie being sold to the public,
as I see it, is that this financial catastrophe is totally unique and
the first ever of its kind ... as if it's something out of the blue
that had no historical precedent. Then we're told, that's why this
requires special bailouts and other special action.

"Sure, none of us want to bail out
Wall Street" (they say) then in the same breath "but this
situation is so unique that without the bailouts, America will
totally collapse".

No it won't. America won't collapse.
The financial industry will collapse (and it will
collapse either way).

This financial meltdown is nothing new.
Economies always go through boom and bust cycles. Speculative bubbles
and excesses are always followed by sharp declines and redistribution
of investment as the market realizes its errors and shifts
strategies, re-evaluates risk/reward, and corrects for
mal-investment.

NONE OF THIS IS NEW... it's an old
story. Sure, it hasn't happened quite like this in nearly 80 years in
America, and it never happens the same way, but it's happened much
more often elsewhere in the world and repeatedly throughout history.

Pushing fear that this is a unique and
game-ending catastrophe is just a tool in extortion. The financial
industry and their agents in government are threatening citizens in
order to take more of society's wealth, after they have already
vaporized substantial amounts of our wealth.

Let's remember that, and also that as
part of a normal boom-bust cycle things are definitely going to be
OK. Question is how fast do we want to return to normal? Keep bailing
out and delaying the inevitable and we could be stuck in a perpetual
bear market for decades.